Posted On: 09/25/2016 12:12:13 PM
Post# of 43065
Interesting article. It's about an analyst who delved into penny stocks and lost money...and then blamed short sellers and the financial industry. The analyst seems oblivious to the fact that the company in which he invested never produced any results.
I will say the financial industry is to blame...but not in the way that analyst in the article mistakenly believes. Take Plastic2Oil, Inc, where a man named John Bordynuik worked with a lawyer named Gregg E Jaclin, Esq. to bring a penny stock online which ultimately ended up with the name Plastic2Oil, Inc.. Anyone can read it in the SEC filings.
https://www.sec.gov/Archives/edgar/data/14156...s1_jbi.htm
As many people already know, the lawyer, Gregg Jaclin, was charged by the SEC earlier this year with launching numerous sham companies, companies where the goal was to sell stock to unsuspecting victims by misrepresenting the businesses and technologies of those companies. https://www.sec.gov/litigation/complaints/2016/comp23537.pdf
One of the other people listed in PTOI's filing was Frank Coy of RBC Dominion who became a Vice President at PTOI. These people worked with Mr. Bordynuik to get the shares in the hands of investors while Mr. Bordynuik was the mouthpiece who overtly committed fraud by falsifying the accounting and by claiming his process could make crude oil for under $10/bbl.
It's definitely a mess...but it's not naked short sellers who are to blame. It's people who put together worthless sham companies and sell shares in those sham companies to unsuspecting investors. Over time, investors figure out their shares are worthless and the stock dies a slow death, but the swindlers already have the investors' money.
And again, if anyone needs any evidence, they only need to look at why none of these supposedly amazing companies ever performed. Short sellers wouldn't stop a company from operating. PTOI burned through $70M of investors' money and the CEO is still holding out his hand asking for more money...even though each original, unimproved processor supposedly cost only $80k and could supposedly clear $10k/day in gross margin. It's straight fraud. Why each of these sham companies still have victims who wholeheartedly believe in the fraudulent statements they were originally told by their respective sham company, I'll never understand.
I will say the financial industry is to blame...but not in the way that analyst in the article mistakenly believes. Take Plastic2Oil, Inc, where a man named John Bordynuik worked with a lawyer named Gregg E Jaclin, Esq. to bring a penny stock online which ultimately ended up with the name Plastic2Oil, Inc.. Anyone can read it in the SEC filings.
https://www.sec.gov/Archives/edgar/data/14156...s1_jbi.htm
As many people already know, the lawyer, Gregg Jaclin, was charged by the SEC earlier this year with launching numerous sham companies, companies where the goal was to sell stock to unsuspecting victims by misrepresenting the businesses and technologies of those companies. https://www.sec.gov/litigation/complaints/2016/comp23537.pdf
One of the other people listed in PTOI's filing was Frank Coy of RBC Dominion who became a Vice President at PTOI. These people worked with Mr. Bordynuik to get the shares in the hands of investors while Mr. Bordynuik was the mouthpiece who overtly committed fraud by falsifying the accounting and by claiming his process could make crude oil for under $10/bbl.
It's definitely a mess...but it's not naked short sellers who are to blame. It's people who put together worthless sham companies and sell shares in those sham companies to unsuspecting investors. Over time, investors figure out their shares are worthless and the stock dies a slow death, but the swindlers already have the investors' money.
And again, if anyone needs any evidence, they only need to look at why none of these supposedly amazing companies ever performed. Short sellers wouldn't stop a company from operating. PTOI burned through $70M of investors' money and the CEO is still holding out his hand asking for more money...even though each original, unimproved processor supposedly cost only $80k and could supposedly clear $10k/day in gross margin. It's straight fraud. Why each of these sham companies still have victims who wholeheartedly believe in the fraudulent statements they were originally told by their respective sham company, I'll never understand.
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Yes, I understand your penny stock also is the real deal, created with the inventiveness of Edison and destined to be the next Microsoft. Yes, I understand that the delays are also only because your company is making their product and/or technology even more revolutionary.
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